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The Thomson Company maintains a checking account at First National City Bank. The bank provides a bank statement along with cancelled checks on the last
The Thomson Company maintains a checking account at First National City Bank. The bank provides a bank statement along with cancelled checks on the last day of each month. July 2020 bank statement included the following information: Balance July 1, 2020 $ 85.150 Deposits 179.500 Checks processed (192,000) Service Charge (50) NSF Checks 12,500) Monthly Note payment deducted directly from bank account (includes $500 in interest) (4,500) Balance July 31, 2018 1 65600 The company's general ledger account had a balance of $47.050 at the end of July. Deposits outstanding totaled $6,300, and all checks written by the company were processed by the bank except for those totaling $7,500. In addition, a $20,000 July deposit from a credit customer was recorded as a $2,000 debit to cash and credit to accounts receivable, and a check correctly recorded by the company as a $300 disbursement for accounts payable was incorrectly processed by the bank as a $3,000 disbursement. REQUIRED: Prepare a bank reconciliation for the month of July. Prepare the necessary journal entries at the end of July to adjust the general ledger cash account. 1
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